The Isle of Man has been cleared of any wrong-doing regarding VAT treatment on business jets, following a series of allegations of VAT avoidance in late 2017 that emerged following the Paradise Papers expose.
The UK Treasury says that the Isle of Man Government correctly implemented the complicated rules involved in importing business jets and yachts into the European Union. It says that the Isle of Man should keep reviewing structures after
“I am pleased to confirm that the reviewers have found no evidence of widespread VAT avoidance,” said Jesse Norman, MP, financial secretary to the Treasury. “However, the Isle of Man government is taking action to improve its post-registration checks as a result of the review. My officials look forward to working closely with them to provide advice and guidance throughout the implementation and in the future.”
I am pleased to confirm that the reviewers have found no evidence of widespread VAT avoidance”
The Isle of Man Government asked the Treasury to review its policies following the leaks of the Paradise Papers in 2017. It was alleged that aircraft were being used for leisure by owners who then falsely claimed their plane was being used for business purposes in order to claim the VAT back.
Chief Minister Howard Quayle said the decision was of “considerable public importance”. He added: ‘We have always maintained that the Isle of Man government followed the same UK and EU laws in relation to the importation of yachts and aircraft.